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Alexis Company uses 748 units of a product per year on a continuous basis. The product has a fixed cost of 57$ per order and a carrying cost of 3$ per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock a.Calculate the EOQ. b.Determine the average level of inventory.(Note:Use a 365-day year to calculate daily usage.) c.Determine the reorder point. d.Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity. (multiple answer)

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Economics 6 Months Ago 65 Views
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